Building Inspection Commission approves Department of Building Inspection budget for FY 2019-20 and FY 2020-21

The San Francisco Building Inspection Commission voted unanimously on Jan. 30 to approve the Department of Building Inspection's proposed budget for fiscal years 2019-20 and 2020-21 following a departmental presentation that highlighted declining permit revenues and increased costs tied to a relocation to 49 South Van Ness.

Deputy Director Taris Madison told commissioners the department's revenues have declined from a FY2015-16 peak (cited in the presentation as more than $84 million) to a preliminary projection of about $69'$70 million in the proposed budget. "We're starting to go down a little bit and in the proposal, we've actually gonna reduce that down to about 69 or $70,000,000," Madison said during the presentation, noting those estimates are preliminary and may be revised at the nine-month update.

Madison said two revenue sources ' building permits and plan review ' make up roughly 59 percent of DBI's revenues and that plan-check revenue is projected near $27,000,000 while building-permit revenue is projected at about $13.7 million in the near term. She said the department is not proposing new positions and is being asked by the mayor's office to maintain current FTE counts, while budget increases reflect cost-of-living adjustments and higher fringe costs.

A major driver of proposed expenditure growth is a planned move to 49 South Van Ness. Madison said the department has been told it needs about $8,000,000 for furniture and equipment, a $700,000 move contract, and $2,400,000 in operating funds for FY2019-20 that include roughly $400,000 in rent for a partial year; operating costs were projected to rise to about $6,200,000 the next year, including approximately $4,200,000 in full-year rent. "We need about $8,000,000 for furniture and equipment for fiscal year 19-20," Madison said.

Madison also flagged increases in peer-review professional services (structural and geotechnical consultants that are reimbursed by project sponsors) and a planned increase in the city-attorney work order to $3,500,000 to cover ongoing legal work related to the department's caseload. She said the department will return with updates if the 49 South Van Ness numbers change.

Commissioners asked for additional detail on the new building's monthly rent and square footage; Madison estimated roughly $141,000 per month for FY2019-20 (partial-year) and about $350,000 per month when annualized under the larger rent figure. She said DBI will provide a more detailed square-footage breakdown at the commission's next meeting.

There was no public comment on the budget. The chair called a roll call vote; President McCarthy and Commissioners Clinch, Constance, Lee, Moss and Warshall voted yes, and the chair announced, "The motion carries unanimously." The transcript records the unanimous outcome but does not record the precise motion text or the meeting member who moved or seconded the motion.

The department's presentation also outlined the budget schedule and next steps: the commission will hold a second hearing at its regular meeting, the mayor's office will receive the budget between February and May, and the board-level budget process will continue with June committee meetings and final approvals later in the summer.